Finance C'tee postpones meeting on property tax change

Changes in property tax (arnona) calculations in some municipalities may have led to spikes in some locations.

Money cash Shekels currency 521.
(photo credit:Reuters)

Knesset Finance Committee Chairman MK Nissan Slomiansky (Bayit Yehudi) on
Tuesday postponed a hearing that would change the way property taxes (arnona)
were calculated in some municipalities, changes that may have led to spikes in
some locales.

"Until now, means meetings on this topic have taken place and
since an formula acceptable to all sides has not yet been accepted, I decided to
postpone the hearing," Slomianksy said.

According to Globes, the
legislative amendment in question would have allowed those municipalities unable
to up property tax on the basis of balconies, parking spaces, and common areas
in apartment buildings to do so, provided they recieved a waiver. Municipalities
that want to lower their property taxes could also receive permission to remove
those items from taxation.

The change would be the first update to arnona
calculation since 1985. Following a 2013 law, financially sound municipalities
are already able to raise property tax by .3% in exchange for loaning cash to
the government.

The Israel Manufacturer's Association campaigned against
high arnona rates, arguing that businesses could not afford the additional
costs.